Financial advisors and real-life retirees have shared their retirement advice for anyone worried about running out of money in their post-work years.
No one wants to run out of money before they die.
These rules are typically derived from complex simulations based on historical returns, economic projections, and assumptions that you will live 30 years in retirement and have a balanced portfolio of either 50-50 or 60-40 stocks to bonds. A more complicated but flexible strategy that might be easiest to employ if you're working with a financial adviser is called the "dynamic spending rule." Generally speaking you set a floor and a ceiling for your annual withdrawal rates based on the size of your portfolio when you start retirement and each subsequent year's withdrawal rate falls within that range on the basis of market performance.
Bengen attributes the difference between his recommendation and Morningstar's partly to how long each assumes market returns will be tempered. Meanwhile, he's keeping an eye on inflation to see if he needs to rethink his 4.7 per cent recommendation. A recent analysis by JPMorgan found that applying the 4 per cent rule to rolling 30-year historical periods since 1928, investors ended up with five times the amount of money they started with roughly a quarter of the time.
For her clients, she recalculates their withdrawal rates every year based on market performance and other factors. But for those not working with an adviser, she recommends keeping things very simple.Generally speaking she thinks the 4 per cent rule is a fair guardrail against people just taking what they feel like. But she doesn't recommend always adjusting for inflation.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Victoria seniors aiming to collectively walk more than 3,000 km in a monthThey're not running in Sunday's Royal Victoria Marathon, but a group of seniors from Parkwood Place Retirement Residence is still aiming to cover a long distance this month.
Read more »
Danielle Smith defends plan to skip Calgary-Elbow byelectionUCP leader and premier\u002Ddesignate Danielle Smith intends to run in a byelection in Brooks\u002DMedicine Hat but not in Calgary\u002DElbow.
Read more »
Danielle Smith defends plan to hold byelection in Brooks-Medicine Hat but not Calgary-ElbowUCP leader and premier\u002Ddesignate Danielle Smith intends to run in a byelection in Brooks\u002DMedicine Hat but not in Calgary\u002DElbow.
Read more »
Danielle Smith defends plan to hold byelection in Brooks-Medicine Hat but not Calgary-ElbowUCP leader and premier\u002Ddesignate Danielle Smith intends to run in a byelection in Brooks\u002DMedicine Hat but not in Calgary\u002DElbow.
Read more »
Danielle Smith defends plan to skip Calgary-Elbow byelectionUCP leader and premier\u002Ddesignate Danielle Smith intends to run in a byelection in Brooks\u002DMedicine Hat but not in Calgary\u002DElbow.
Read more »
Stittsville retirement home supporting local Ukrainian refugeesThe Hazeldean Gardens Retirement Home is accepting in-person donations to support local Ukrainian refugees.
Read more »